American automaker Lucid Group released its Q1 2023 financial results on May 8, which basically contain disappointing figures.
The electric automaker reported $149.4 million in the first quarter of the year. However, its $780 million net loss largely countered that gain (from $604.6 million in 2022).
Lucid lowers production forecast
Lucid’s Q1 2023 results strongly suggest that the startup is depleting its funds as the demand for its $90,000 Lucid Air premium EV is declining.
All that considered, Lucid reduced their expectation for 2023 production from its initial estimate of 10,000–14,000 vehicles to “more than 10,000 vehicles.”
Since Lucid produced its first Air EV in September 2021, there has been a disparity between the number of units produced and the number of units delivered. The fact that Lucid only sold 1,406 vehicles in Q1 despite producing 2,314 units in the same period is another indication of declining demand.
The automaker assured that it had about $4.1 billion in overall liquidity at the end of the first quarter, sufficient to cover expenses at least into Q2 2024.
“We are on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow.”
Lucid’s CEO and CTO, Peter Rawlinson
Seeing Lucid struggle to succeed in the fiercely competitive electric vehicle market is disheartening. Its high-end Lucid Air EV vehicle has won various accolades, including a 5-star certification from the Euro NCAP.
See Also:
- Lucid Group to layoff 18% of employees, including executives
- Lucid Motors recalls 637 Air models that could lose power
- Lucid launches Apple CarPlay on every Air model in the latest over-the-air update
- Lucid offers reservation holders a $7,500 discount on Air luxury models
- Lucid is under competitive pressure from Tesla
Lucid’s stock fell roughly 9% in extended trade following the release of its weak Q1 2023 results.
